Whether 0.524% DA Ratio by PRC 2015 recommendation-gain or loss ?

After the announcement of 43% fitment by Andhra Pradesh and Telangana State Governments to its employees in 10th PRC (i.e., PRC 2015), it has been a hot topic among employees on calculating how much benefit they are getting from this PRC. One of the burning topics is also that the 0.524% DA (Dearness Allowance) to State Govt Employees to every 1% of Govt of India Central DA as proposed by PRC Commission is Gain or Loss ?. Some are stating and sending messages that there is huge loss as the Present DA Ratio is 0.856% looks far better than to the proposed 0.524%.. Hence apteachers.in has decided to discuss briefly on this matter with some examples.<!-more->

First of all let us see what was stated by the PRC Commission on Dearness Allowance in its report to Govt. Dearness Allowance is a compensatory allowance to neutralize the rise in the cost of living index.

Several employees’ associations have requested for sanction of D.A. on par with Central Government employees and some of them, have requested for equal rate of D.A. on par with Central Government employees. The Government of India evolved their scales by merging Dearness Allowance as on 1.1.2006, with Basic Pay. We have, as is the practice in the State, recommended merging of Dearness Allowance in Basic Pay as on 1.7.2013.

Since the Basic Pay has been worked out by us by merging Dearness Allowance at a higher level than the Government of India, the rate of Dearness Allowance sanctioned to the employees of the Government of India cannot be adopted directly in respect of the employees of the State Government. For this purpose, the State Pay Revision Commissioners have been recommending a conversion formula, to ensure that the quantum of Dearness Allowance sanctioned is at par with what is sanctioned by the Centre.

Accordingly, this Commission recommends that Dearness Allowance be regulated at 0.524% (536:1022) for the State Government Employees for every 1% of Dearness Allowance sanctioned to the employees of Government of India With effect from 1.1.2014.

Whether 0.524% DA Ratio PRC 2015 recommendation gain or loss ?

After studying the recommendation let us see how to calculate the difference in DA Ratio as per the present and PRC Recommendation.

Let us assume that Your Basic is at Rs.100 on 1.7.2013 i.e., on the PRC 2015 date.

DA on 1.7.2013 is 63.344%, hence your New basic after merging the DA in your Old basic of Rs.100 will be Rs.100 + 63.344 = Rs.163.344. For details see the table below.

Description

In Old Pay (Present)

In New PRC

Explanation

Basic as on 1.7.13

100

163.344

DA on 1/7/13 merged to Basic

% of DA to every 1% of Central DA

0.856

0.524

10% Central DA announced w.e.f 1.1.14

8.56% (10 x 0.856)

5.24% (10 x 0.524)

10% value

Total Value of 10% DA

100 x (8.56 /100) = 8.56

163.344 x (5.24 / 100) = 8.559

Both have the same value hike

7 % Central DA announced w.e.f 1.7.14

(7 x 0.856) =5.992 %

( 7 x 0.524) = 3.668%

7% value

Total Value of 7% DA

100 x (5.992 /100) = 5.992

163.344 x (3.688/100) = 6.02

Both Equal New Pay DA slightly high

Total DA Hike 17% ( from Jan-Dec 2014 )

17 x 0.856 = 14.552

17 x 0.524 = 8.908

17% Value

DA Hike Value in Rs.

100 x 14.552 / 100 = 14.55

163.344 x 8.908 / 100 = 14.55

Same Values

From the above examples it is very much clear that there is NO LOSS on fixing the DA Ratio at 0.524%, more over it will be a gain as the 43% fitment is also going to be added to the Basic as on 1.7.13.

Hence there is NO Loss or Gain at present.

What happens when Central Government announces Central PRC in 2016 or 2017:

Is it a point to be discussed ?. When Central Govt announces its PRC, then the State Govt may also change its Ratio basing on the situations and calculations at that time. It is out of the topic to discuss this matter at present as the Central PRC will be announced after 2 Years.

So what is your opinion... Is 0.524% DA Ratio recommendation by PRC 2015 Gain or Loss ?. Let us know, if we have missed any thing in doing calculations..Do comment...

Sir, I appreciate your concentration on the job. You are absolutely right. For newly established Andhra Pradesh state our CM Mr. Chandra Babu did excellent dare step to give 43 % fitment with regard to present situation. There will not be any problem with regard to DA as you said and it will be again changed from Jan-2016 as per 7 CTC of central government. Thank you very much for your website and informations available on the site

PRC is meant for leaving the old pay scales. if we get the same benifit in new PRC also.. then what is the need of a PRC? lets take a short example.... if the ratio is 1=0.524 for every 10% = 5.240% for evry 1000 basic 52.40 rupees raise... where as if the ratio is 0.856 for every 10%=8.560% for every 1000 basic 85.60rupees...

>For 2019 PRC also the DA ratio is crucial... let us assume that every six months raising in central DA is 6% so 10 time to July ,2019 is 60%... our state DA will be 31.440 (@0.524). so THISTLES is the fixing DA at 2019. if it is 0.856 it will be 51.360%. the difference is huge... so, we have a right to ask for better DA%..

It looks like.. Even Not a single ball is thrown in 2015 World Cup, but You are thinking about 2019 Cricket world Cup..One more thing,. Show some maturity While applying DA%... You have applied New DA % old Basic...

Dear sirs, you have to remember one point. when comparative any prc the basic is doubling automatically and there is no question of da portion. why you are talking only on da ? why you are not talking of hra portion which was doubled to present one. one thing sir, the gain will not be there for each and every point of the basic, da, hra and etc. some where it will be high gain some where it be less gain. So, you have to think overall benefit what you got. My dear sirs please dont think other wise. You have to get benefit of money. where ever it is, whether it is in the form of basic or da or hra final output is that. thanks for all the comments and calculations.

inakenduku sir mottom rastranni ammesi meeku da hra immandam i appreciate your consent sir god bless you government has not sanctioned any thing if you ask if your leads beg then they will sanction please note this point

GOVERNMENT OF ANDHRA PRADESHABSTRACTALLOWANCES - Dearness Allowance  Dearness Allowance to the State GovernmentEmployees from the 1st January, 2004, 1st July, 2004 and 1st January, 2005 in theRevised Pay Scales 2005  Sanctioned  Orders  Issued.FINANCE (PC-I) DEPARTMENTG.O.(P).No.214 Dated: 30-8-2005.Read the following:1. G.O.Ms.No.734, G.A (Spl.A) Department, dated 17-2-2004.2. G.O.Rt.No.960, G.A.(Spl.A) Department, dated 1-3-2004,3. G.O.(P).No.588, Finance (PC-I) Department, dated 7-8-2004.4. G.O.(P).No.4, Finance (PC-I) Department, dated 10-1-2005.5. G.O.(P).No.161, Finance (PC-I) Department, dated 22-6-2005.6. G.O.(P).No.213, Finance (PC-I) Department, dated 27-8-2005.* * *O R D E R:In the Government order first read above, orders were issued constituting aPay Revision Commission to look into the Pay Scales of the State Governmentemployees. In the Government order second read above, terms of reference of the PayRevision Commission were issued. In the Government orders 3rd, 4th and 5th read aboveorders were issued revising the rates of Dearness Allowance in the Revised Pay Scales1999 from 1st January, 2004, 1st July, 2004 and 1st January, 2005.2. The Pay Revision Commission submitted report on 30-6-2005. Among otherthings, the Pay Revision Commission evolved new pay scales by merging DearnessAllowance which existed on 1-7-2003. It also recommended for 100% neutralization toall the employees and also to sanction Dearness Allowance at 0.942% of pay for every1% of Dearness Allowance sanctioned to the employees of the Government of Indiafrom 1st January, 2004 onwards.3. Government have accepted the above recommendations vide Governmentorder 6th read above and accordingly, in partial modification of the orders issued in theGovernment orders 3rd, 4th and 5th read above, hereby sanction Dearness Allowance in theAndhra Pradesh Revised Pay Scales, 2005 which came into existence from 1-7-2003 withmonetary benefit from 1st April, 2005 at the rates indicated below.-----------------------------------------------------------------------------------Date of effect Revised rates of DA (Cumulative)-----------------------------------------------------------------------------------1-1-2004 1.884%1-7-2004 4.710%1-1-2005 7.536%-----------------------------------------------------------------------------------4. The Dearness Allowance sanctioned in para 3rd above shall be payable to allthe Government employees, employees of Local Bodies and Aided Institutions includingAided Polytechnics, Work Charged employees who are drawing pay in the Revised PayScales, 2005.5. These orders are not applicable to those employees who are continuing todraw pay in the Revised Pay Scales 1999 and also to the Teachers of the AffiliatedDegree Colleges and Universities drawing pay in the Revised University GrantsCommission/All India Council of Technical Education/Indian Council of AgriculturalResearch Scales of 1986/1996.6. The Dearness Allowance shall be claimed along with the pay fixation in theRevised Pay Scales, 2005 and the Dearness Allowance already sanctioned in theGovernment orders 3rd, 4th and 5th read above shall be notionally adjusted upto 31-3-2005and the monetary benefit shall however be from 1-4-2005 only. The arrears from 1-4-2005 to 31-7-2005 will be credited in to the General Provident Fund Accounts of theemployees for the current financial year i.e. 2005-06. The revised rates of DearnessAllowance shall be paid in cash along with the salary in the Revised Pay Scales 2005from August, 2005.7. The G.O. is available on Internet and can be accessed at the addresshttp://www.aponline.gov.in.(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)RANJEEV R. ACHARYASECRETARY TO GOVERNMENT (FP

Dinesh kumar can you explain in telugu :CAN ANY ONE EXPLAIN THIS TEXT (EXTRACTION OF PRC REPORT VOLUME-I)07.05. Several employees’ associations have requested for sanction of D.A. on par with Central Government employees and some of them, have requested for equal rate of D.A. on par with Central Government employees. The Government of India evolved their scales by merging Dearness Allowance as on 1.1.2006, with Basic Pay. We have, as is the practice in the State, recommended merging of Dearness Allowance in Basic Pay as on 1.7.2013. Since the Basic Pay has been worked out by us by merging Dearness Allowance at a higher level than the Government of India, the rate of Dearness Allowance sanctioned to the employees of the Government of India cannot be adopted directly in respect of the employees of the State Government. For this purpose, the State Pay Revision Commissioners have been recommending a conversion formula, to ensure that the quantum of Dearness Allowance sanctioned is at par with what is sanctioned by the Centre. 07.06. Accordingly, this Commission recommends that DearnessAllowance be regulated at 0.524% (536:1022) for the State GovernmentEmployees for every 1% of Dearness Allowance sanctioned to theemployees of Government of India With effect from 1.1.2014.

The Pay Revision is to increase the salaries but the govt of AP is giving The old Central Pay Commission Salaries, this is defined by the above example. The New Structure is not Compared by the old. The 7th CPC Entry BASIC is 18000 but AP NEW ENTRY BASIC is only 13000. At least The ANNUAL INCREMENT is not equal to the 3% in AP. Another thing is there is no impact of 7th CPC to AP employees except pension and Gratuity Calculations. So the govt of AP is giving OLD salaries of CENTRAL CPC.